Court Directs Whether Work-In-Progress And Other Intangible ‘Assets' Are ‘Circulating Assets'

The Supreme Court of New South Wales has helpfully given guidance to the liquidators of the RCR Tomlinson Group on a number of unsettled questions that have challenged insolvency practitioners (particularly liquidators of construction companies) when assessing whether certain intangible rights and assets are circulating assets.

The questions include:

• What is the relevant date ('snapshot date') for making this assessment for the purposes of determining the property available to pay priority employee entitlements pursuant to section 561 of the Corporations Act?
• Is work-in-progress under a construction contract a circulating asset?

A link to the full decision is here.

Snapshot date